Farrah and James -- who, along with having genitals that resemble an elephant trunk, once starred in a mainstream movie with Lindsay Lohan -- were photographed walking into the offices of Vivid Entertainment yesterday.

The two were holding hands ... but it's unclear if they're dating ... or just simply friends with professional benefits.

Farrah previously told TMZ she's AGAINST the release of the tape and is considering legal action to stop the footage from going public.